Skip to main content

SAP || Fixed Assets ||


Fixed Assets

What are the organizational assignments in asset accounting?
Chart of depreciation is the highest node in Asset Accounting and this is
assigned to the company code.
Under the Chart of depreciation all the depreciation calculations are
stored.

How do you go about configuring Asset accounting?
The configuration steps in brief are as follows:-
a) Copy a reference chart of depreciation areas
b) Assign Input Tax indicator for non taxable acquisitions
c) Assign chart of depreciation area to company code
d) Specify account determination
e) Define number range interval
f) Define asset classes
g) Define depreciation areas posting to general ledger
h) Define depreciation key

Explain the importance of asset classes. Give examples?
The asset class is the main criterion for classifying assets. Every asset
must be assigned to only one asset class. Examples of asset class are
Plant& Machinery, Furniture & Fixtures, Computers etc. The asset class
also contains the Gl accounts which are debited when any asset is
procured. It also contains the gl accounts for depreciation calculation,
scrapping etc
Whenever you create an asset master you need to mention the asset
class for which you are creating the required asset. In this manner
whenever any asset transaction happens the gl accounts attached to the
asset class is automatically picked up and the entry passed.
You can also specify certain control parameters and default values for
depreciation calculation and other master data in each asset class.

How are depreciation keys defined?
The specifications and parameters that the system requires to calculate
depreciation amounts are entered in Calculation methods. Calculation
methods replace the internal calculation key of the depreciation key.
Depreciation keys are defaulted in Asset Master from the asset class.

Refer to the configuration for more details of how depreciation is
calculated.
A company has its books prepared based on Jan –Dec calendar year
for reporting to its parent company. It is also required to report
accounts to tax authorities based on April- March. Can assets be
managed in another depreciation area based on a different fiscal
year variant?
No. Assets accounting module cannot manage differing fiscal year variant
which has a different start date (January for book depreciation and April
for tax depreciation) and different end date (December for book
depreciation and March for tax depreciation). In this case you need to
implement the special purpose ledger.

What are the special steps and care to be taken in Fixed asset data
migration into SAP system especially when Profit center accounting
is active?
Data migration is slightly different from a normal transaction which
happens in Asset accounting module.
Normally, in asset accounting the day to day transactions is posted with
values through FI bookings and at the same time the asset reconciliation
is updated online realtime. Whereas In data Migration the asset master
is updated with values through a transaction code called as AS91. The
values updated on the master are Opening Gross value and the
accumulated depreciation. The reconciliation GL account is not
automatically updated at this point of time.
The reconciliation accounts (GL codes) are updated manually through
another transaction code called as OASV.
If profit center is active, then after uploading assets through AS91 you
should transfer the asset balances to profit center accounting through a
program.
Thereafter you remove the Asset GL code (reconciliation accounts) from
the 3KEH table for PCA and update the Asset reconciliation account (GL
code) through OASV.
After this step you again update the Asset reconciliation account in the
3KEH table.
The reason you remove the Asset reconciliation code from 3KEH table is
that double posting will happen to PCA when you update the Asset
reconciliation manually.

Is it possible to calculate multiple shift depreciation? Is any special
configuration required?
Yes it is possible to calculate multiple shift depreciation in SAP for all
types of depreciation except unit of production. No special configuration
is required.

How do you maintain multiple shift depreciation in asset master?
The following steps are needed to maintain multiple shift depreciation:
1. The variable depreciation portion as a percentage rate is to be
maintained in the detail screen of the depreciation area.
2. The multiple shift factor is to be maintained in the time dependent
data in the asset master record. This shift factor is multiplied by
the variable portion of ordinary depreciation.
Once you have done the above the SAP system calculates the total
depreciation amount as follows:-
Depreciation amount = Fixed depreciation + (variable depreciation * shift
factor)

Let’s say you have changed the depreciation rates in one of the
depreciation keys due to changes in legal requirements. Does
system automatically calculate the planned depreciation as per the
new rate?
No. System does not automatically calculate the planned depreciation
after the change is made. You need to run a program for recalculation of
planned depreciation.

What are evaluation groups?
The evaluation groups are an option for classifying assets for reports or
user defined match code (search code). You can configure 5 different
evaluation groups. You can update these evaluation groups on to the
asset master record.

What are group assets?
The tax requirements in some countries require calculation of
depreciation at a higher group or level of assets. For this purpose you
can group assets together into so-called group assets.

What are the steps to be taken into account during a depreciation
run to ensure that the integration with the general ledger works
smoothly?
For each depreciation area and company code, specify the following:
1 The frequency of posting depreciation(monthly,quarterly etc)
2 CO account assignment (cost center)
3 For each company code you must define a document type for
automatic depreciation posting: This document type requires its
own external number range.
4 You also need to specify the accounts for posting. (Account
determination)
Finally to ensure consistency between Asset Accounting and Financial
Accounting, you must process the batch input session created by the
posting report. If you fail to process the batch input session, an error
message will appear at the next posting run.
The depreciation calculation is a month end process which is run in
batches and then once the batch input is run the system posts the
accounting entries into Finance.

How do you change fiscal year in Asset Accounting?
n Run The fiscal year change program which would open new annual
value fields for each asset. i e next year
. The earliest you can start this program is in the last posting period of
the current year.
. You have to run the fiscal year change program for your whole
company code.
. You can only process a fiscal year change in a subsequent year if the
previous year has already been closed for business.
Take care not to confuse the fiscal year change program with year-end
closing for accounting purposes. This fiscal year change is needed only in
Asset Accounting for various technical reasons.

Is it possible to have depreciation calculated to the day?
Yes it is possible. You need to switch on the indicator “Dep to the day” in
the depreciation key configuration.

Is it possible to ensure that no capitalization be posted in the
subsequent years?
Yes it is possible. You need to set it in the depreciation key
configuration.

How are Capital Work in Progress and Assets accounted for in SAP?
Capital WIP is referred to as Assets under Construction in SAP and are
represented by a specific Asset class. Usually depreciation is not charged
on Capital WIP.
All costs incurred on building a capital asset can be booked to an
Internal Order and through the settlement procedure can be posted onto
an Asset Under Construction. Subsequently on the actual readiness of
the asset for commercial production, the Asset Under Construction gets
capitalized to an actual asset.

The company has procured 10 cars. You want to create asset
masters for each of this car. How do you create 10 asset masters at
the same time?
While creating asset master there is a field on the initial create screen
called as number of similar assets. Update this field with 10. When you
finally save this asset master you will get a pop up asking whether you
want to maintain different texts for these assets. You can update
different details for all the 10 cars.

Popular posts from this blog

SAP || FI-MM-SD Integration ||

FI-MM-SD Integration
How do you go about setting the FI MM account determination ? FI MM settings are maintained in transaction code OBYC. Within these there are various transaction keys to be maintained like BSX, WRX, GBB, PRD etc. In each of these transaction keys you specify the GL accounts which gets automatically passed at the time of entry. Few examples could be: BSX- Stands for Inventory Posting Debit GBB-Standsfor Goods Issue/Scrapping/delivery of goods etc PRD- Stands for Price Differences.
At what level is the FI-MM, FI-SD account determination settings? They are at the chart of accounts level.
What are the additional settings required while maintaining or creating the GL codes for Inventory accounts? In the Inventory GL accounts (Balance sheet) you should switch on the ‘Post automatically only’ tick. It is also advisable to maintain the aforesaid setting for all FI-MM accounts and FI-SD accounts. This helps in preserving the sanctity of those accounts and prevents from having any difference …

SAP || FI GL ||

FI-GL
Q.Give some examples of GL accounts that should be posted automatically through the system and how is this defined in the system.
Ans: Stock and Consumption accounts are instances of GL accounts that should be automatically posted . In the GL account master record, a check box exists wherein the automatic posting option is selected called “
Post Automatically Only”

Q.What is a Account group and where is it used?
Ans: An Account group controls the data that needs to be entered at the time of creation of a master record. Account groups exist for the definition of a GL account, Vendor and Customer master. It basically controls the fields which pop up during master data creation in SAP.

Q.What is a field status group?
Ans: Field status groups control the fields which come up when the user does the transactions. There are three options for field selection.
    They are:
       Display only
       Suppressed
       Mandatory
So basically you can have any field either for display only …

SAP || AR AND AP ||

Accounts Receivable and Accounts Payable
At what level are the customer and vendor codes stored in SAP? The customer and vendor code are at the client level. That means any company code can use the customer and vendor code by extending the company code view.
How are Vendor Invoice payments made? Vendor payments can be made in the following manner: Manual payments without the use of any output medium like cheques etc. Automatic Payment program through cheques, Wire transfers, DME etc.
How do you configure the automatic payment program? The following are the steps for configuring the automatic payment program:- Step 1 Set up the following: Co. code for Payment transaction Define sending and paying company code. Tolerance days for payable Minimum % for cash discount Maximum cash discount Special GL transactions to be paid
Step 2 Set up the following: Paying company code for payment transaction Minimum amount for outgoing payment No exchange rate diff Separate payment for each ref Bill/exch payment Form for pay…